cost overrun
Exceeding projected expenses
A cost overrun is the amount by which actual expenses exceed the budgeted or estimated cost of a project.
The term appears most often in construction, defense contracting, and large infrastructure projects: The bridge project had a $40 million cost overrun.
Cost overruns may result from poor planning, scope changes, or unforeseen complications.
Progressive increase in intensity
- overbudgetExceeding allocated funds
- overspendSpend beyond means
- excessSurplus beyond need
- overageAmount beyond expected
surplus · percentage · multiplier · doubling · ballooning · spiraling · runaway · massive
Plan for spending
- estimateInformed guess at quantity
- projectionSomething that extends outward
- allocationDistribution of shares
- forecastingEstimating future conditions
planning · baseline · variance · tracking · contingency · reserve · cushion · buffer
Amount still owed
- shortfallFailure to reach quota
- debtMoney owed another
- lossesThings subtracted from standing
- red inkSymbol for financial loss
budget blowout · financial strain · insolvency · delays · cutbacks · penalties · litigation · funding gap
Judging below actual value
- miscalculationError in estimation
- scope creepUncontrolled project growth
- delaysPauses before proceeding
- inflationSustained price level increase
design changes · supply chain · complexity · optimism bias · change orders · regulatory requirements · weather · rework
Process of building something
- infrastructureBasic physical systems
- defenseProtection against harm
- procurementObtaining goods externally
- megaprojectExtremely large-scale undertaking
renovation · development · public works · transportation · engineering · Big Dig · Sydney Opera House · Concorde
escalation
Progressive increase in intensity
- overbudgetExceeding allocated funds
- overspendSpend beyond means
- excessSurplus beyond need
overage · surplus · percentage · multiplier · doubling · ballooning · spiraling · runaway · massive · minor
budget
Plan for spending
- estimateInformed guess at quantity
- projectionSomething that extends outward
- allocationDistribution of shares
forecasting · planning · baseline · variance · tracking · contingency · reserve · cushion · buffer · allowance
deficit
Amount still owed
red ink · budget blowout · financial strain · insolvency · delays · cutbacks · penalties · litigation · funding gap · write-off
underestimation
Judging below actual value
- miscalculationError in estimation
- scope creepUncontrolled project growth
- delaysPauses before proceeding
design changes · inflation · supply chain · complexity · optimism bias · change orders · regulatory requirements · weather · rework · inefficiency
construction
Process of building something
- infrastructureBasic physical systems
- defenseProtection against harm
- procurementObtaining goods externally
megaproject · renovation · development · public works · transportation · engineering · Big Dig · Sydney Opera House · Concorde · Olympics
- work problemslayoff, firing, low pay, burnout, deadline pressure
- budget termsbudget, deficit, surplus, spending, revenue
- cost analysisoperating expenses, operating expense, budget analysis, expense reports, expense
- Budget Errorsoverspending, underestimating, shortfall, deficit, underfunding
- bureaucracybureaucracy, bureaucrat, bureaucrats, red tape, civil service
- constructionconstruction site, building site, hammer, building, beam
cost overruncost control
Managing expenses systematically
fiscal discipline · cost efficiency · financial prudence · frugality
cost, costs, costing, costed, costly, costlier, costliest, costliness, overrun